CBOT corn gains on Senate passage of biofuels bill

Corn prices over came early losses on the Chicago Board of Trade on Friday after the United States Senate passed a bill that will, if President George W. Bush signs it as promised, will quadruple biofuels production and use in the US over 15 years.

The House of Representatives is expected to approve the bill, which the Senate okayed on a vote of 86 to 8, next week.

March CBOT corn added 3.25 cents to $4.3825 per bushel.

Meanwhile, January CBOT soybeans added 11 cents to $11.57 per bushel on demand from overseas buyers.

March wheat on CBOT gained 26 cents to $2.795 per bushel.

Oil prices were lower in New York on Friday on worries that demand could fall after a new report that consumer prices were up 0.8 percent in November.

While the International Energy Agency issued an upward revision on oil demand for next year, a number of analysts believe that the IEA is not taking signs that demand is dropping into consideration.

West Texas Intermediate crude for January delivery was down 95 cents near the close of floor trade on the New York Mercantile Exchange to $91.30 per barrel, but January contracts for Brent crude added 30 cents to $92.42 per barrel on the ICE Futures Europe exchange in London.

Nymex January gasoline dropped 4 cents to $2.33 per gallon, while January heating oil traded even at $2.62 per gallon and March natural gas fell 21 cents to $7.13 per million British thermal units.

Precious metals prices were mixed on Friday in New York.

February gold was $6 lower to $798 per troy ounce after the USD again gained on the euro.

March silver was also lower, dropping 25 cents to $13.98 per troy ounce, but January platinum added $7.60 to $1,479.20 per troy ounce.

Among base metals, copper prices were mixed.

March copper traded even at $2.96 per pound in New York on demand concerns while three-month copper on the London Metal Exchange added $35 to $6.545 per tonne.

Story link: CBOT corn gains on Senate passage of biofuels bill